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| Mrs. Merkel - a true European visionary with political skills | 
An Observer editorial notes: "Seventy years after the founders of modern Europe set out to bring 
stability, unity and prosperity to a war-ravaged continent, Europe and 
its principal political manifestation, the 
European Union,
 face a renewed, potentially defining struggle against the re-energised 
forces of internal division and fragmentation and external hostility and
 encroachment.
The scale of this challenge has yet to be fully 
appreciated. Its outcome is wholly uncertain. In consequence, 2015 may 
prove a fateful year for all the peoples of Europe.
The challenge comprises many elements, chief of which is whether the 
politics of austerity will be replaced by a more flexible, 
people-friendly economic regimen. Austerity, mainly in the form of 
public spending cuts and attempted deficit reduction, has wrought 
huge human and social damage.
 One key measure of pain is unemployment. In Spain, joblessness stands 
at around 23%. In Greece, the figure is 25%. In some areas of France and
 Italy, youth unemployment topped 40% at its highest point. Across the 
EU in 2013, 26 million people were unemployed, or one in eight of all 
workers. 
Many millions more are underemployed.
Austerity has caused tremendous political as well as social strain. 
The tough line dictated by chancellor Angela Merkel of Germany, who will
 arrive in London this week, is increasingly resented and there are 
clear signs of push-back. France’s new prime minister, 
Manuel Valls,
 introduced a €30bn reform package designed to boost business and jobs. 
His boss, President François Hollande, an old-school socialist, openly 
reviles Merkel’s “neoliberal” policy and its main underpinning, the 
European stability pact governing national budgets.
“To reform is to affirm our priorities, while refusing austerity,” Valls declared. Another newcomer, 
Italian premier Matteo Renzi,
 described as “Merkel’s most dangerous rival”, also links structural 
reform to a loosening of EU rules, notably Merkel’s holy grail, the 2012
 fiscal pact. In November, 
both countries won budget reprieves from the European commission.
Still
 the only European leader who can credibly claim international statesman
 stature, Merkel, who is coming to London on Wednesday for talks with 
David Cameron on a range of issues, including the European economy, 
faces increasing criticism at home, not least from her centre-left 
vice-chancellor and coalition partner, Sigmar Gabriel. He argues the rise of right- and leftwing populism across Europe can only be checked by rapid economic improvements.
Nor can Merkel count on useful support from the new European commission president, 
Jean-Claude Juncker,
 or, more surprisingly, from Britain’s government, fellow champion of 
austerity and no friend to Hollande. In more skilful hands, David 
Cameron’s calls for EU reform might have meshed well with German 
priorities for sound money and stability, but Cameron has recklessly 
squandered European alliances and opportunities. In any case, he may 
soon be out of office.
While recent indicators suggest the worst of the recession is over, 
the full extent of the political fallout at grassroots level across 
Europe is only now becoming apparent. Elections this year in Greece, 
Spain, the UK, Denmark, Finland, Poland, Portugal and Estonia will 
provide further proof of the fragmentation of postwar consensus politics
 as erstwhile minority parties come to the fore.
In Britain, Ukip, the 
Greens and the Scottish Nationalists are aiming to usurp the traditional
 centre-left and centre-right parties. Likewise in Greece and Spain, it 
seems the centre cannot hold against a surge in support for the 
populist, anti-austerity leftwing insurgents of 
Syriza and 
Podemos respectively. 
In Sweden, the two mainstream parties, desperate to keep the far-right 
Sweden Democrats
 out of government, conspired to form a Merkel-style grand coalition, 
thereby effectively denying voters real choice. Finland faces a similar 
dilemma over its hard-right, anti-immigrant party.
Last year’s European parliament elections revealed unprecedented, 
pan-European dissatisfaction with politics as usual, but Brussels took 
scant notice, installing Juncker, a quintessential establishment figure,
 and creating a centrist coalition in parliament. Out of touch hardly 
describes such complacent behaviour. The significance of the rise of 
Europe’s new parties can no longer be denied, nor can they be dismissed 
as mere, temporary protest movements.
Yet Europe’s new politics, organic in nature and fast evolving, cannot be easily quantified or defined. Some, such as the 
Pegida demonstrators
 in Germany, are motivated by racist and anti-Muslim views. Merkel was 
entirely right last week to condemn them. But a new poll showed one in 
eight Germans sympathises with Pegida. Such views have a more 
pernicious, formal presence on Germany’s political stage in the shape of
 the anti-euro, anti-foreigner Alternative für Deutschland, which is 
eclipsing the old Free Democrats in the way Ukip may eclipse Britain’s 
Liberal Democrats.
In each country, new parties produce new imponderables. In Greece, 
for example, the growth of leftwing radicalism is in part a response to 
the advancing neo-Nazis of 
Golden Dawn.
 In the case of some of Europe’s secessionists, meanwhile, 
self-determination and economic justice have sometimes been confused 
with an unattractive, exclusionary nationalism. There is one constant: 
everywhere, it seems, immigration is an issue of concern.
The overall effect of these powerful and often conflicting currents 
is plain: in prospect is an unstable landscape of weak and fragile 
national governments, escalating friction over EU policies, intensifying
 north-south eurozone strains and a growing inability to present a 
united European front to the world.
A united front is required more than ever, as Europe faces the triple
 challenge of mass movements of people, Russian aggression and Islamist 
extremism. Almost alone among Europe’s leaders, Merkel continues bravely
 to make the case for accepting refugees from conflict in Syria, Libya, 
Iraq, Somalia and elsewhere. But as the plight of asylum-seekers trapped
 on 
the Ezadeen, which arrived in Italy yesterday,
 again demonstrated, this is an enormous international problem.
Most 
European states, including Britain, have not begun to face up to their 
responsibilities in dealing with mass migration and tackling the roots 
of the religious extremism that often causes displacement.
After 
Vladimir Putin
 dismembered a European country by annexing Crimea, 
 Europe enters 2015 
lacking certainty, for the first time since the cold war, that its 
borders are secure. It was left to Merkel, again, to point out in 
November that Putin’s attempt to re-establish Soviet-era spheres of 
influence affects not only Ukraine, Georgia and Moldova, but countries 
much closer to Europe’s heart, such as Serbia and Bosnia, and EU members
 Hungary and Slovakia.
Russia’s expansionist and anti-democratic outlook
 recalls the worst aspects of the legacy Europe fought to overcome after
 1945. The struggle for a Europe whole, prosperous and free has now 
returned with a vengeance."
EU-Digest